Santa Fe digs up financing for takeover

Columbus Silver Corp. says Santa Fe Gold Corp. (OTCBB:SFEG) has obtained conditional debt financing to complete its planned $10-million takeover of the Vancouver-based junior miner.

Getting such financing was a condition under a deal the two companies struck earlier this month that will see Santa Fe buy Columbus Silver for 20 cents a share, or $10 million in total.

Columbus Silver said Tuesday it has reviewed Santa Fe’s credit agreement and “is satisfied with its form and content.”

The acquisition, when completed, will add significantly to Santa Fe’s silver and gold ore available for processing at its mill near Lordsburg in New Mexico.

The two companies hope to complete the deal by the end of March, at the earliest.

In announcing the deal nearly two weeks ago, Santa Fe’s president and CEO, Pierce Carson, said the transaction “is strategically important to Santa Fe’s future.”

Santa Fe Gold develops gold, silver, copper and industrial mineral properties in the southwestern United States. The company’s main asset is the Summit mine and Lordsburg mill in southwestern New Mexico.

Columbus Silver explores and develops silver projects in the United States.